Business Environment

Fares and bonuses for GO-JEK drivers in Indonesia



Fares and bonuses as a source of income for GO-JEK drivers

The news is out that GO-JEK has successfully raised another whopping $550 million in funding, which will be used not to generate revenue in the short term, but for promos to get more people to download the app, to pay for app improvements, and to fund bombastic promos and bonuses from price wars with Grab, Uber, and existing public transit agencies.

If the growth of a start-up is to propose a novel business model, raise funds from investors who judge that it will grow rapidly in a short period of time, release a product in a short period of time, and make a profit later, focus on penetrating the market awareness first, and finally stabilize the profit structure by connecting it to the next funding while achieving a minimum of results, then GO-JEK is still like a rocket rising toward the atmosphere while checking the capital burn rate.

The flat fare of 10,000 rupiah at the beginning of the service was shocking, but of course there is no driver who will accept the customer's order willingly with only 80% of the revenue of the short and long distance flat fare of 10,000 rupiah, so GO-JEK head office gives a subsidi (supplementary money) named bonus to the driver according to the points (mileage).

The only things I've used so far are GO-FOOD (I got a beef tongue bowl from NEGIYA), GO-SEND (I returned an incorrect size of clothes from an online shop), GO-BOX (490,000 rupiah for moving from Kuningan to Thamrin), and GO-CLEAN (cleaning and ironing my apartment), but the GO-BOX I used for moving last week was shockingly cheap at 490,000 rupiah for two people a day.

It seems that the GO-JEK driver who was said to be a higher salary taker than a general office worker at this time last year also could not earn as much as before because the number of registrants increased too much though it may mean that the fund-raising is successful.

GO-JEK's income consists of 80% of the fare plus a bonus from GO-JEK, but the bonus system has changed in various ways, and the bonus for GO-RIDE drivers used to be Rp 100,000 for 10 points, but as of August 2016, it has dropped to Rp 100,000 for 14 points.

GO-RIDE drivers can earn 1 point for 6km, and GO-SEND drivers can earn 2 points for each order.

The fare is 15,000 rupiah for 6km, which is 1 point = 6km for the driver.

  • Income from fares:Rp 15,000 x 80% = Rp 12,000 => Rp 120,000 for 10 points
  • Bonus: 10 points (60km) for a bonus of 100,000 rupiah

This translates into an income of Rp 220,000 per day.

GO-JEK drivers expect more bonuses than fares

The GO-JEK application is also improved every day, but it is said that there was a driver and a customer colluded and there was a driver who earned 30 juta in a month illegally during the fare explosion cheap period at the beginning of the service.

For example, a GO-JEK driver will accept an order from a fellow customer to go from the Thamrin Road office to Bekasi (about 20 km).

The driver doesn't go to pick up his fellow passengers on Thamrin Road, but rather passes the time for an hour or so, and if both the driver and his fellow passengers complete, he gets 3 points for 20km (1 point = 6km).

Next, Bekasi asked his fellow customers to go to Depok and they accepted...and repeated the process to get 50 points per day, and got 1 juta for 5 points with a bonus of 100,000 rupiah at that time.

The money is transferred to the driver from the GO-JEK head office every Tuesday and Friday, but such a bold maneuver does not seem to be accepted because there is a GPS tracking function in the application for the driver now.

It is often heard these days that if a customer orders a GO-JEK and then tries to cancel it, the customer will not be able to cancel.

    • Don't cancel, just take it as is

If a customer cancels an order, the customer will be charged a cancellation fee, but the GO-JEK driver will charge the customer a cancellation fee.

  • You don't have to pay a cancellation fee if you don't cancel and just ride it. Give me 5 stars on my rating instead.

and ask for it.

This is because even if the driver pays for GO-JEK's share of 20% of the fare, it is better to get 5 stars and points instead and get a bigger bonus.

GO-JEK's head office has no choice but to lower fares to be more competitive in the market, and to maintain drivers' motivation by introducing a bonus system.